Mortgage Broker Fees

[akajonnyg]

Hi all. I am the process of looking for a house to buy. I have a DIP (decision in principle) from a mortgage broker but have been given a better deal elsewhere. The broker that gave us the DIP now wants £495 for 'his work' and tells us that the DIP cannot be cancelled. Is this correct - is the broker entitled to charge us the full DIP fee even though we are not going to be taking the mortgage and will be getting the finance through a different route? Thanks in advance for your answers

[buildersmate]

What does the document that you signed say, when making the application. I should think it highly likely that it defines what your obligations are if DIP approval is given but you then back out.

[Peter Pedant]

yeah ask him what clause in the contract he is relying on